Health insurance hikes planned

Published: Saturday, December 1, 2012 at 10:26 p.m.

Last Modified: Saturday, December 1, 2012 at 10:26 p.m.

The premiums that Terrebonne Parish Consolidated government employees’ pay for health insurance are expected to climb 5 percent over the next three years.

During the Parish Council’s committee meetings Monday at the Government Tower, council members will discuss increasing the share employees pay for coverage from 15 percent to 20 percent. The meeting starts at 5:30 p.m. in the second-floor meeting room, 8026 Main St.

Under the plan, employees’ premiums would increase incrementally over three years, until they reach 20 percent.

An employee would pay an additional $266.88 per year for a standard single plan and an additional $733.92 for the standard family plan. All permanent, full-time employees are eligible for coverage.

The parish provides a self-funded health care plan that uses taxpayer money and employee contributions. It does not pay an insurance company for its claims; although, United Health Care is subcontracted through the program as its third-party administrator.

Terrebonne Parish Chief Financial Officer Jamie Elfert said the changes come after careful evaluation from the administration and the program’s need to sustain itself over time.

“Instead of waiting until we hit a brick wall and we have to scramble to make ends meet, we are taking the necessary precautions in the realm of so many uncertainties,” Elfert said, referring to changes in federal policies and the rising cost of medicine.

“Our job is to look toward to future and evaluate what’s at stake over a period of time,” she said. “These are human beings we a dealing with, so it is important that we make these small changes to make sure we can take care of their claims.”

Because the insurance program is self-funded, it must pay all its own claims, Parish Manager Al Levron said.

“This past year we are anticipating a 16 percent increase in claims as compared to the budget,” he said, adding that “medical costs are trending up double digits.”

Levron said the planned increases are an “unfortunate reality.”

“If we don’t make this change, the claims’ costs are going to increase, and we won’t have the money to pay,” Levron said.

The primary cause of the increasing claims is the unhealthy lifestyle in south Louisiana that leads to obesity and its associated ills, Levron said.

<p>The premiums that Terrebonne Parish Consolidated government employees' pay for health insurance are expected to climb 5 percent over the next three years.</p><p>During the Parish Council's committee meetings Monday at the Government Tower, council members will discuss increasing the share employees pay for coverage from 15 percent to 20 percent. The meeting starts at 5:30 p.m. in the second-floor meeting room, 8026 Main St.</p><p>Under the plan, employees' premiums would increase incrementally over three years, until they reach 20 percent. </p><p>An employee would pay an additional $266.88 per year for a standard single plan and an additional $733.92 for the standard family plan. All permanent, full-time employees are eligible for coverage.</p><p>The parish provides a self-funded health care plan that uses taxpayer money and employee contributions. It does not pay an insurance company for its claims; although, United Health Care is subcontracted through the program as its third-party administrator.</p><p>Terrebonne Parish Chief Financial Officer Jamie Elfert said the changes come after careful evaluation from the administration and the program's need to sustain itself over time.</p><p>“Instead of waiting until we hit a brick wall and we have to scramble to make ends meet, we are taking the necessary precautions in the realm of so many uncertainties,” Elfert said, referring to changes in federal policies and the rising cost of medicine. </p><p>“Our job is to look toward to future and evaluate what's at stake over a period of time,” she said. “These are human beings we a dealing with, so it is important that we make these small changes to make sure we can take care of their claims.” </p><p>Because the insurance program is self-funded, it must pay all its own claims, Parish Manager Al Levron said.</p><p>“This past year we are anticipating a 16 percent increase in claims as compared to the budget,” he said, adding that “medical costs are trending up double digits.”</p><p>Levron said the planned increases are an “unfortunate reality.”</p><p>“If we don't make this change, the claims' costs are going to increase, and we won't have the money to pay,” Levron said.</p><p>The primary cause of the increasing claims is the unhealthy lifestyle in south Louisiana that leads to obesity and its associated ills, Levron said.</p>